‘AMBASSADOR PROMISE MSIBI INTERFERED WITH ESTATE AGENTS’

MBABANE – The country’s Ambassador to Ethiopia, Promise Msibi, has been found to have interfered in the sale of government properties in Kenya and as a result four of the houses have still not been sold for almost 10 years.

This is according to the report of the Public Accounts Committee (PAC) on the investigation of the failure by the Ministry of Foreign Affairs and International Co-operation to sell the government houses to Kenya which was tabled in the House of Assembly yesterday.

Msibi is alleged to have interfered every time the estate agents, Llyod Masika Limited, found buyers as he would instruct them to sell the houses to other buyers picked by him.  The investigation was carried out by thae Chairperson of the PAC, Thuli Dladla, who led a delegation of seven to Kenya from August 24/27, 2016.  

One example given was the proposed sale of LR No 209/7340/8 on Kabirisan Road, where the house was valued at KES (Kenyan Shillings) 77.5 million (about E7.7 million), and there were no bids when it was put up for sale in 2012.
Another advertisement was run in Kenyan newspapers in November 2014 and six bids were received, the highest being KES 85 million (about E8.5 million).
After an offer had been accepted by the estate agents and lawyers, as well as the necessary agreements signed, the highest bidder (a certain Dr Gachao Kiuna) paid a 10 per cent deposit for the property with the agreement that he would pay the balance after the consent for the sale had been granted by Kenya’s Lands Office.

“However, in December 2014  Swaziland’s Ambassador to Ethiopia instructed the estate agents to sell the house to another buyer picked by him for KES 92 million (about E9.2 million),” reads the report. 
Realising the implications of the breach of contract, the estate agents referred the matter to the attorneys, Kaplan and Stratton, who engaged the ambassador but he allegedly insisted that the house should be sold to his buyer, Edmonton Properties Limited.

“The attorneys then asked Dr Kiuna to match the KES 92 million offer and he duly did. However, again the ambassador said the property should be sold to Edmonton Properties, despite the fact that the initial bidder, Dr Kiuna, had matched the offer, paid the deposit and signed the requisite documents,” the report reads.

The estate agents ended up refunding Dr Kiuna his deposit and dealt with Edmonton Properties, who paid a 10 per cent deposit, but have still not paid the balance and as a result the house had still not been sold.  One of the houses in Thomson Court, Kitanga, Road was, however, sold for E1.9 million   before the PAC delegation arrived in Kenya.

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